On October 2, CR Enterprise and Tesco reached the final agreement on the integration of their retail businesses in China and the establishment of a joint venture, with Chen Lang, Du Wenmin, Wei Bin and Chen Ying attending the ceremony in London on behalf of the Group.

According to the agreement, Tesco will transfer its retail and real property management businesses in mainland China to the new joint venture. CR Enterprise and Tesco will hold 80% and 20% of the equity of the joint venture, respectively. After the completion of the transaction, the joint venture will integrate 2986 Vanguard stores under the control of CR Enterprise and 134 Tesco stores and shopping centers. The joint venture will be the inclusive platform for CR Enterprise and Tesco to operate all retail businesses in Greater China, including hypermarkets, supermarkets, convenience stores, cash & carry businesses, monopoly liquor outlets (as well as all the online stores of the foregoing businesses).

This Agreement is subject to the approval of relevant government and regulatory agencies, and once approved, will enter into force in the first half of 2014.

After the signing ceremony, Deputy General Manager Chen Lang and the whole delegation were invited to visit retail shops of various business modes and logistic centers of Tesco in London and the two parties exchanged opinions on the future cooperation and mutual development.